Loan Changes

In our last e-newsletter, we mentioned the major changes coming to loan disclosures that will have a significant impact on the timeline to close a loan. Since that post, the Consumer Financial Protection Bureau announced it will delay this law, called the "Know Before you Owe Law" until October 2015. Click Here to link to the CFPB website with more information about exactly what will be changing. This is an important read for Buyers looking to purchase in the next few months.

Price Changes and Inventory Across the United States

There are many metrics people are using to analyze data about the price changes of real estate markets across the United States. I've included this one provided from FHFA below.

A 'balanced' real estate market is based on the premise that, at any given time, there is a 6 month supply of inventory. Nationwide, our inventory falls below that number, and this chart demonstrates how significant a dip we've had over the last few months in the Denver metropolitain area.

Now, when you break down the inventory across various price points, you can see further how the price range you're considering may be significantly more or less competitive than another one. This important chart clarifies the notable disparity between the luxury market and all other price ranges.

What's Going on with Mortgages Right Now?

There's been some fluctuation recently as global markets and domestic reports have triggered both small increases and decreases in the interest rates our Buyers are able to lock with their lenders. While there appears to be no doubt that, on a larger scale, interest rates have nowhere to go but up, here's a chart that highlights how low they still remain and will continue to be for the next few years compared to historic rates over the last 40 years.

Worried We're in A Bubble? Don't Be....

The Chief Economist for Realtor.Com, Jonathan Smoke, was recently asked if he was concerned real estate was headed towards another "bubble" market. He responded by saying, that no we aren't, this is merely, "what happens when demand increases faster than supply." Backing that statement was David Blitzer, the managing director and Chairman of the Index Committee for S&P Dow Jones Indices, who said, " Given the long stretch of strong reports, its no surprise that people are asking if we are in a new home price bubble...I would describe this as a rebound in home prices, not a bubble and not a reason to be fearful."